Alanah Eriksen's excellent articles (September 1 and 2) on short-term accommodation problems uncovered policy dilemmas the council should revisit. The council recently affirmed the 100-day threshold (when residential become commercial rates) and to strengthen monitoring and compliance.
There is confusion over purposes to be served. Was it fairness, ensuring Rotorua's competitive advantage, protecting the motel business model against ICT-enabled innovations, targeting "user pays" rates for tourism infrastructure, or some or all of these purposes that drove the decisions, or just "pretend action" as free market choices actually determine a fresh equilibrium?
In my view, council policy making simply stalled. The decision was disconnected from earlier discussions about fair rates. It is very different from the IRD's threshold of 60 days p/a for allowing business-related expenses, and even more so from Queenstown's boundary of 30 days p/a.
Moteliers resent unfair competition turning Rotorua into a "discount town". Residents resent the nuisance noise and parking associated with commercial accommodation in residential areas, aggravated by uneven compliance.
The online booking agencies resent impediments to choice and are cautious about suggesting ethical business practices. Social services resent how the decision encourages owners to switch out of longer-term rentals and add to homelessness.